MADISON, WI—Lorenz William Kent, a director at First Business Financial (NASDAQ:FBIZ) Services, Inc. (NASDAQ:FBIZ), has sold 1,000 shares of the company's common stock. The transaction, reported on November 19, 2024, was executed at a price of $49.00 per share, totaling $49,000.
Following this transaction, Kent holds 8,341 shares directly. Additionally, he has indirect ownership of 8,178 shares through his spouse's IRA. Notably, 2,896 shares are held in a revocable living trust for Kent and his spouse, with both serving as co-trustees, and 2,520 shares are held by Kent's IRA.
In other recent news, First Business Financial Services reported strong earnings of $1.23 per share, surpassing expectations due to robust pre-provision net revenue, a lower provision for credit losses, and a reduced tax rate. The positive financial performance led Piper Sandler to increase the price target to $53, keeping an Overweight rating on the stock, while DA Davidson and Keefe, Bruyette & Woods upgraded the stock and increased the price target to $50 and $51 respectively. Additionally, the company issued $20 million in subordinated debentures with a 7.5% fixed interest rate, set to mature in 2034, as part of its strategy to manage capital requirements and support future loan growth.
The company also saw a 10% increase in loan growth, primarily driven by growth in commercial and industrial loans, and a rise in net interest margin by 7 basis points quarter over quarter. These recent developments are expected to continue supporting a positive outlook for the company's net interest income. Piper Sandler's outlook for First Business Financial Services includes a revised EPS forecast for 2024 and 2025, and introduced a 2026 EPS estimate of $6.00. Lastly, the company maintained its quarterly cash dividend at $0.25 per common share, indicating a stable return for its investors.
InvestingPro Insights
While Director Lorenz William Kent's recent sale of 1,000 shares might raise eyebrows, it's essential to consider the broader financial picture of First Business Financial Services, Inc. (NASDAQ:FBIZ). According to InvestingPro data, FBIZ boasts a market capitalization of $416.49 million and trades at a P/E ratio of 10.84, suggesting a relatively modest valuation compared to its earnings.
Investors should note that FBIZ has demonstrated strong performance, with a remarkable 51.87% price total return over the past year. This aligns with an InvestingPro Tip highlighting the company's high return over the last year. Additionally, FBIZ is trading near its 52-week high, with its current price at 96.78% of that peak, indicating robust investor confidence.
Another positive aspect is FBIZ's commitment to shareholder returns. The company has maintained dividend payments for 20 consecutive years and has raised its dividend for 12 consecutive years, as noted by InvestingPro Tips. With a current dividend yield of 2.01% and a dividend growth rate of 9.89% over the last twelve months, FBIZ appears to be rewarding its long-term investors.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips on FBIZ, providing a more comprehensive view of the company's financial health and market position.
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